Original from: Siemens Healthineers

Siemens Healthineers AG today announces its results for the third quarter of fiscal year 2024 ended June 30, 2024.

Q3 Fiscal Year 2024 

¡¤    Good equipment book-to-bill ratio of 1.07 further increases already high order backlog 

¡¤    Comparable revenue growth of 4.3% against a very strong prior-year quarter (10.1% excluding rapid COVID-19 antigen tests) and despite continued order delays in China 

¡¤    Imaging comparable revenue growth of 3.8% against sharp growth in the prior-year quarter; adjusted EBIT margin of 20.0% 

¡¤    Diagnostics comparable revenue growth of 2.1%; adjusted EBIT margin of 7.4% clearly above the prior-year quarter 

¡¤    Varian comparable revenue growth of 9.6%; adjusted EBIT margin of 16.6% shows clear improvement over prior-year quarter 

¡¤    Advanced Therapies comparable revenue growth of 0.4% against significant growth in the prior-year quarter; adjusted EBIT margin of 13.9% 

¡¤    Overall adjusted EBIT margin of 15.2% 

¡¤    Adjusted basic earnings per share of €0.52

Outlook for Fiscal Year 2024 

We confirm our expectation of comparable revenue growth of between 4.5% and 6.5% (between 5.0% and 7.0% excluding revenue from rapid COVID-19 antigen tests) and adjusted basic earnings per share of between €2.10 and €2.30. 

Bernd Montag, CEO of Siemens Healthineers AG: 

»We made good progress again in the third quarter, despite ongoing order delays in China. Varian and Diagnostics especially contributed to the strong operating performance. We confirm our outlook for the financial year.«

Revenue in the third quarter of fiscal year 2024 was around €5.4 billion. This corresponds to comparable revenue growth of 4.3%.

From a geographical perspective, the Americas region achieved very strong comparable revenue growth. In the EMEA region, comparable revenue rose strongly and in the region Asia Pacific Japan it rose moderately. In the China region, revenue declined by a low double-digit percentage against a very good prior-year quarter due to temporarily delayed customer orders.

Equipment order intake in the third quarter again exceeded equipment revenue, with an equipment book-to-bill ratio of 1.07.

Adjusted EBIT increased by 9% year-on-year to €825 million in the third quarter. This resulted in an adjusted EBIT margin of 15.2%, also higher than in the prior-year quarter. Negative currency effects were offset by earnings improvements associated with the transformation program in the Diagnostics business.

Net income was €472 million, an increase of 5% over the prior-year period. The tax rate of 21% was above the very low rate of 13% in the prior-year quarter.

Adjusted basic earnings per share of €0.52 were slightly below the prior-year figure of €0.55. Increased earnings contributions from operating business were offset by a higher tax rate and higher financing costs than in the prior-year period.

Free cash flow reached €546 million, clearly above the prior-year quarter. In particular, a reduction in receivables had a positive effect.

Revenue in the Diagnostics segment increased by 2.1% on a comparable basis to around €1.1 billion in the third quarter. In the China region, the segment achieved comparable growth in the low double-digit percentage range against a significantly negative development in the prior-year quarter. In the EMEA region, revenue rose strongly. While revenue in the Asia Pacific Japan region was around the prior-year level, revenue in the Americas region declined moderately.

The segment¡¯s adjusted EBIT margin of 7.4% was clearly above the prior-year quarter. The main reason for this was cost reductions in connection with the transformation program. In addition, the longer useful life of leased-out laboratory analyzers and earnings contributions from revenue growth had a positive effect.

Outlook

For fiscal year 2024, we continue to expect comparable revenue growth of between 4.5% and 6.5% over fiscal year 2023. Excluding revenue from rapid COVID-19 antigen tests, this corresponds to comparable revenue growth of between 5.0% and 7.0%.

The expectation for adjusted basic earnings per share remains unchanged at between €2.10 and €2.30.

The outlook is based on several assumptions. This includes the expectation that the current macroeconomic environment, including the interest rate level, will remain largely unchanged.

Furthermore, the outlook is based on assumptions regarding revenue growth and the adjusted earnings development of our segments. These assumptions remain unchanged, with the exception of the Imaging segment, for which the comparable revenue growth assumption has been revised as follows:

For the Imaging segment, we now expect comparable revenue growth of between 4.5% and 5.5% (previously 6% to 8% in the 2023 Annual Report).

Furthermore, the outlook is based on assumptions about the tax rate. We now expect this to be between 22.0% and 24.0% (previously 24.0% to 26.0% in the 2023 Annual Report).

In addition, the outlook is based on assumptions about exchange rate developments. Furthermore, this outlook excludes potential portfolio measures. In addition, the outlook is based on the assumption that developments related to the war in Ukraine and conflicts in the Middle East will not have a material impact on our business activities. The outlook is based on the number of shares outstanding at the end of fiscal year 2023. This outlook also excludes charges from legal, tax and regulatory issues and framework conditions.

Source: Siemens Healthineers shows continued positive order momentum, confirms outlook